1How do you choose a loyalty platform?
Compare Smile.io, LoyaltyLion, and Beans based on integrations (Klaviyo, Recharge), customization, and API access. Ensure it supports multi-currency, headless frontends, and automation triggers. Start with free tiers for validation before annual contracts.
Check if the provider can import historical orders so loyal customers are rewarded from day one.
2How do you structure tiers and rewards?
Create tiers (Insider, VIP, Elite) tied to annual spend or points. Offer multipliers (x1.5 points) and exclusive perks (early access, gift-with-purchase). Map rewards to high-margin items or experiences. Publish a tier comparison table on PDPs and in account dashboards.
Use cohort analysis to ensure tier thresholds are achievable yet motivating.
3How do you automate earning and redemption?
Sync order status changes to loyalty APIs so points issue on completion. Automate birthday, review, and referral bonuses. At checkout, display available points and one-click redemption. For subscriptions, apply discounts automatically on next renewal.
Throttle referral rewards to prevent fraud—limit to unique IPs or first-time buyers only.
4How do you promote the program?
Add loyalty banners to header, PDP, and order confirmation emails. Use triggered campaigns (“500 points away from VIP”) and highlight success stories on social. Provide landing pages detailing perks and FAQs.
Run limited-time booster campaigns (double points weekend) to spike engagement during slow seasons.
5How do you report on loyalty ROI?
Track repeat purchase rate, LTV, and point liability. Compare VIP AOV vs non-members. Use Looker Studio blending loyalty data with WooCommerce orders. Present ROI (incremental revenue minus discount cost) quarterly.
Set guardrails: stop point issuance if liability exceeds a preset percentage of trailing revenue.